PERTH (miningweekly.com) – ASX-listed Senex Energy has entered into a binding scheme implementation agreement (SIA) with Korean suitor POSCO International Corporation, under which POSCO was offering A$4.60 a share for each Senex share held.

The Senex board has unanimously recommended that shareholders vote in favour of the SIA, in the absence of a superior proposal and the independent expert concluding that the SIA is in the best interests of shareholders.

Senex directors intend to vote all shares they hold or control in favour of the SIA, subject to these same conditions.

“Throughout our discussions with POSCO, the Senex board has been focused on maximising value for our shareholders,” said chairperson Trevor Bourne.

“The offer announced today, which is recommended by the board, reflects an attractive value for Senex and the opportunity for our shareholders to realise a certain cash price for their shares.”

The SIA is conditional upon a Senex shareholder approval, Court approval, Foreign Investment Review Board approval, Korean foreign exchange approval, completion of the proposed acquisition of natural gas fields PL 209 and PL 445 and other customary conditions.

If approved, the Scheme is expected to complete in late March 2022.

Meanwhile, Senex on Monday also announced the signing of a domestic gas sales agreement with Shell Energy Australia, for the supply of 8 PJ of natural gas, over four years.

Starting in 2022, Senex will supply around 8 PJ of natural gas at the Wallumbilla Hub at a fixed price in line with current market levels.

Senex MD and CEO Ian Davies said Senex was committed to supplying reliable, affordable and sustainable natural gas for Australian businesses.

“We are proud to continue supporting the economy and jobs in local communities, and helping Australia transition to a lower carbon future,” Davies said.